Apple to Sell $5 Billion of Debt to Fund Stock Buybacks and Dividends

Share & comment

Apple to Sell $5 Billion of Debt to Fund Stock Buybacks and Dividends

Share & comment

Apple is initiating another bond sale, which is reportedly worth $5 billion, as part of efforts to return $300 billion to shareholders by March 2019.

According to Bloomberg, the sale is being issued in four parts. The first part is a 30-year security, which may yield 1.1 percent points above Treasuries, rather than the 1.25 initially expected. In an official Securities and Exchange Commission filing on Tuesday, Apple stated that Goldman Sachs, Bank of America, and Deutsche Bank are managing the transaction.

The company is said to be about three-quarters of the way through its capital return program, mixing dividends and share buybacks.

To fuel its financial program, the company has turned to bond sales around the world, including Australia, Japan and most recently Canada. The company could finance the effort with its more than $261.5 billion in cash reserves, but much of that lies overseas.